1)Q=K+L+KL
For determining returns to scale, we need to multiply the constant with both the inputs and the output.
If f(xK,xL)> xf(K,L) then it is increasing returns to scale.
If f(xK,xL)< xf(K,L), then decreasing returns to scale
If f(xK,xL)= xf(K,L)., then constant returns to scale
f(xK,xL)= xK+xL+x^{2}KL> x(K+L+KL)=xQ
Hence this would be the case of increasing returns to scale
2) Q=2K^{2}+3L^{2}
f(xK,xL)= 2(xK)^{2}+3(xL)^{2}= x^{2}(f(K,L)>xf(K,L)= xQ
Hence it is also giving increasing returns to scale
3)Q=KL
f(XK,xL)= (xK)(xL)= x^{2}KL> xQ
This also displays increasing returns to scale
4)min(3K,2L)
f(xK,xL)= min(3xK,2xL)= xmin(3K,2L)= Qx
This displays constant returns to scale.
Determine whether each of the production functions below displays constant, increasing, or decreasing returns to scale:...
Determine whether each of the production functions below displays constant, increasing, or decreasing returns to scale: Q = 10K0.75L0.25 Q = (K0.75L0.25)2 Q = K 0.75L0.75 Q = K 0.25L0.25 Q = K + L + KL Q = 2K2 + 3L2 Q = KL Q = min(3K, 2L)
3. Determine whether each of the following production functions below displays constant, increasing, or decreasing returns to scale: (a) Q = 10(K0.75 0.252 (b) Q = 2K2 +312 (c) Q=K+L+KL (d) Q = min(3K, 2L) (e) Q = 10K0:250.25
5. Determine whether each of the following production functions displays constant, increasing, or decreasing returns to scale. Show workings. a) Q= 10K 0.75, 0.25 b) Q = 2K+ + 3L c) Q = (Kº75 0.25 2 d) Q=K+L+KL
Briefly show whether the following production functions exhibit increasing, decreasing, or constant returns to scale: Y = K2/3 + L2/3 Y = min {2L+K, 2K+L} Y = 20*L1/5*K4/5
2) Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale (or none of these) a) Y=K+L^1/3 b) Y= aln(L) + bIn(k)
1. Below are production functions that turn capital (K) and labor (L) into output. For each of the production functions below, state and PROVE whether it is Constant/Increasing/or Decreasing Returns to scale. That is, you want to see how production changes when you increase all inputs (KL) by a factor of a, where a > 1: (3 points each) (a) F(K.L) = (b) F(KL)= min (4K, 2L + 20 (c) F(K,L) = 5K+ 10L
1. State whether the following production functions exhibit increasing, constant, or decreasing returns to scale in K and L. (a) Y = K1/3L1/2 (b) Y = K2/3L (c) Y = K1/2 [1/2
Q#02 Check whether the following production function exhibits (10 Marks) Constant Returns to Scale Increasing Returns to scale Decreasing Returns to scale . i. Y = Kal1-a ii. Y = (KL-ay iii. Y = KOLB iv. Y = (K 1/4L 1/8), v. Y = KL
Added this question before but they were not correct, please double check answers. Thank you 5. Decide whether the following production functions belong to increasing, constant, or decreasing returns to scale? Q = L+K's Q- L+395K d, e. 5. Decide whether the following production functions belong to increasing, constant, or decreasing returns to scale? Q = L+K's Q- L+395K d, e.
1. Returns to scale. A production function has constant returns to scale with respect to inputs with inputs K and L if for any z >0: F(z . K, z、L) = zF(K, L), For example, for a production function with constant returns to scale, doubling the anount of each input (i.e., setting z = 2) will lead to a doubling of the output from the production function. A production function has increasing returns to scale if for any z and...